Silver has been consolidating for a while and is now set to trend upward. Unlike gold, silver is used a lot in industry, so when the economy grows, silver tends to do well. The US GDP is expected to grow by 2.1% in the first quarter, which is good news. Economic recoveries in China and the eurozone will also boost silver prices.
The Silver Institute predicts that demand for silver will reach 1.2 billion ounces in 2024, the second-highest level ever. India's increased interest in silver, seen in its imports of 3 million tons in January-February, is similar to the history of gold, which also saw rising demand from Asia.
Additionally, silver production in Mexico and Peru has dropped by 25% compared to 2016 levels, creating a deficit in the market. This is a strong reason to consider buying silver. Despite expectations of fewer monetary expansions by the Fed in 2024, which could strengthen the US dollar, precious metals are still benefiting from global currency weakness due to rate cuts worldwide.
Unlike gold, silver isn't seeing a surge in central bank buying amid de-dollarization. Instead, regulators are shifting away from the dollar and treasuries and toward gold. This has led to a high gold/silver ratio of 88, much higher than the historical average of 67. However, the World Gold Council doesn't expect central banks to keep buying at the same rate as in 2022-2023, so the ratio is likely to decrease.